Community

Environmental and social responsibility management

The Macquarie Group (Macquarie) manages a range of investment vehicles within Macquarie Capital. Macquarie Media Group (MMG) is one of these vehicles. Macquarie Group has made a public statement on corporate citizenship which is available on its website.

The commitment is based on Macquarie taking a long-term view of its business activities and acknowledging the importance of good custodianship to the communities in which it operates.

As set out on Macquarie’s website, this commitment is underpinned by:

• A clear expectation of ethical behaviour from Macquarie staff, which has been adopted by MMG and which has been set out in the Code of conduct
• A robust framework of policies including those relevant to environmental, social and governance (ESG) responsibilities.

Responsibility

All Macquarie staff, including those working for MMG, have a collective responsibility to ensure that Macquarie continues to be a good corporate citizen. MMG management is supported in this by Macquarie’s integrity, equal employment and sustainability and environment officers, and the risk management group.

Macquarie staff may also contribute their time, expertise, or finances, to community organisations through the Macquarie Group Foundation.

MMG

MMG believes that many social, environmental and economic benefits arise from responsible operation of high-quality media businesses. MMG is also aware that with these benefits lies the potential for risk, including ESG risk.

MMG’s approach to managing risk, including ESG risk, falls under the Macquarie Capital framework which is consistent with Macquarie’s framework. However, the Macquarie Capital framework also incorporates policies and practices that reflect the risks specifically associated with particular investments. Key policies, procedures and accountabilities are set out in Macquarie Capital Funds’ environmental and social responsibility management which can be found on MMG's website.

The framework is applied throughout MMG’s investment process as follows:

• Asset selection: Environmental and social responsibilities are reviewed as part of the acquisition due diligence process
• Ongoing asset management: Regular asset board reporting enables compliance with environmental requirements to be monitored and environmental and social responsibility issues to be identified
• Stakeholder reporting: Policies, social and environmental initiatives, and compliance performance are reported internally and, where appropriate, externally.

Environmental and social responsibility related regulatory requirements

MMG is not aware of any significant breaches of relevant environmental and social responsibility related regulatory standards by its assets during the year ended 30 June 2008.

Environmental and social responsibility related initiatives undertaken at MMG assets during FY2008

During FY2008 a change in the legislation covering reporting requirements removed MMG’s obligation to send hard copies of MMG’s annual and interim reports to security holders, unless specifically requested.

A large number of MMG security holders chose to receive only electronic copies of reports. In conjunction with Planet Ark, MMG has assessed the reduction in the manufacture, printing and shipment of the reports in one year as having saved nearly four tonnes of paper, 110,000 litres of water, 730kg of waste to landfill and 8,000kg of greenhouse gas (GHG) emissions.

Carbon Disclosure Project

MMG is a participant in the Carbon Disclosure Project (CDP). The CDP is an annual international survey intended to guide the investment decisions of institutional investors, by providing them with information about how companies approach climate change. In FY2008 MMG outlined its approach to assessing and managing environmental risks, which include climate change. From FY2009 MMG will provide more information about its energy consumption and the greenhouse gas emissions arising from its activities.

Macquarie Southern Cross Media

Give Me 5 For Kids

MSCM’s ‘Give Me 5 For Kids’ initiative began over 13 years ago on the Central Coast of New South Wales, Australia, where listeners were encouraged to give their ‘loose change’ to aid sick children in the local area. The fundraiser’s success encouraged MSCM to implement the initiative across its national network.

Throughout the month of June 2008, 31 MSCM radio stations, supported by Southern Cross television stations, raised money as part of the annual ‘Give Me 5 For Kids’ appeal. Breakfast teams at each station ran events, competitions and other activities, raising more than A$1 million across the network. The funds will be used to purchase much-needed equipment for children’s wards at local hospitals.

American Consolidated Media

The newspapers within the ACM portfolio are involved in contributing to the communities in which their readers live and work. For example:

The Star Democrat and Sunday Star (Maryland)

Since 1984 the readers of the Star Democrat and Sunday Star have participated in ‘The Brighter Christmas Fund’. Each edition throughout the Christmas season features a front-page story about a person or family in the local community facing challenging times. Readers are invited to send donations to the fund, care of the newspapers, and the donors’ names are published. A board of directors comprising people from the community oversees the program and, in conjunction with local social agencies, ensure the funds are distributed to people in need.